The New Zealand Dollar (NZD) broke the 2-week range trend posting 0.9060 (1.1035) Thursday against the Australian Dollar (AUD) but wasn’t able to hold this area with the AUD reversing losses to push back Friday to 1.1105 (0.9005). We get the feeling the cross should be well into the 89’s with recent weakness but since the AUD has also struggled this week we haven’t seen big swings. Australian Iron Ore prices and weakness in the Chinese economy have been a contributor to recent Aussie weakness. The RBA remains reluctant to move interest rates due to stubborn inflation which could appreciate the AUD in the next while.
The current interbank midrate is: NZDAUD 0.8990 AUDNZD 1.1112
The interbank range this week has been: NZDAUD 0.8980- 0.9062 AUDNZD 1.1034- 1.1135